Bacardi Canada told CBC News it has pulled out of the festival due to the failure of organizers to secure a liquor license.
On Friday, the B.C. Liquor Control and Licensing Branch announced it was turning down the Boonstock Music Festival's application due to unaddressed safety concerns.
Nevertheless the organizers have said the festival will open Thursday with the first act hitting the stage at 7 p.m. PT.
This is the first year it has been held in Penticton.
For the past nine years it was held in Gibbons, Alta, north of Edmonton, but last year, neighbourhood backlash over alleged littering, trespassing, vandalism and other incidents that required police involvement prompted local officials to vote down allowing the massive event to continue in Sturgeon County.